Credit spread 1:1

The smile is really a smirk in index and only becomes a smile due to microstructure (deep otm upside strikes trading 10 x 30 cents; 8 x 25 vols). Vol-smile is really only in some SN and deliverables (commodity futures)
 
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wxytrader said:
I'm accounting for either direction where the short call vertical (index) will result in better gains and less losses.
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And I told you why it’s there. How is your intraday binary sht working? Buy another Lambo with the gains?
 
wxytrader said:
I'm accounting for either direction where the short call vertical (index) will result in better gains and less losses.
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Knowing that… what do you do with it? You’re only going to short slightly otm cs?

Short otm cs and dynamically hedge shares?

Short the cs, buy the ps and buy 11 SPY to be neutral in time? All of this sht is artifact of a vol-skew. Welcome to the 20th Century! Let us know when you accumulate enough to cover that $300 in losses from the binary thing. We’ll all be slaves of our AI-overlords by then.
 
destriero said:
How many Lambos does Trump have?

Id pay to organize a trading comp between you and Tao.
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I think you should look at your pnl in the term of lamoborghinis.

Like you made a gallardo e-gear on NVDA skew locks and are up several aventador's this year.
 
destriero said:
The smile is really a smirk in index and only becomes a smile due to microstructure (deep otm upside strikes trading 10 x 30 cents; 8 x 25 vols). Vol-smile is really only in some SN and deliverables (commodity futures)
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Wait, so I have just illustrated the volatility smirk with my example? The reason that short calls will out perform long puts is that by nature puts are more expensive so you lose when purchasing them, that and the time decay favouring the short calls. In otherwords, the short call will lose more value than the long put gains in a downturn, and it will gain less value than the long put loses in an uptrend?

This reminds me of:

Bilbo: "I don't know half of you half as well as I should like, and I like less than half of you half as well as you deserve."
 
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